Modern (MRNA) Q2 2022

Illustration of a vial of Moderna vaccine for the treatment of coronavirus.

Marcos Del Mazo | Light flare | Getty Images

modern announced second-quarter results on Wednesday that beat expectations for earnings and revenue, which generated $4.5 billion in sales of its Covid-19 vaccine, but it is still the only product available in the company’s business and he was hit hard by the expiring injections.

The Boston biotech company’s costs have risen to $1.4 billion, or 30% of the revenue generated by its vaccine. Moderna has suffered nearly $500 million in write-downs for vaccines that have expired or are expected to expire before they can be used.

Moderna also lost $184 million in vaccine purchase commitments and had $131 million in expenses for idle manufacturing capacity. These accusations are due to substantial reductions in planned vaccine deliveries to Covax, an international alliance that buys vaccines for the poorest countries. Deliveries have also been postponed for large customers like the European Union.

The Boston biotech company generated $4.7 billion in sales for the quarter, a 9% increase over the same period last year. Moderna maintained its Covid vaccine sales forecast for 2022 at $21 billion.

Moderna posted adjusted earnings of $5.24 per share, down 18% from the second quarter of 2021. The company’s net income was $2.2 billion, down 20% compared to the same period in 2021.

Moderna has $18 billion in cash and said it will buy back $3 billion of its stock with some of that money.

Here’s how the company performed against Wall Street expectations, based on average analyst estimates compiled by Refinitiv:

  • Adjusted EPS: $5.24 per share, vs. $4.55 expected
  • Revenue: $4.7 billion, vs. $4.1 billion expected

Moderna last week announced a $1.74 billion deal with the United States to supply 66 million doses of its updated Covid vaccine that targets the omicron BA.4 and BA.5 subvariants. The agreement includes an option to purchase an additional 234 million doses.

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